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Application of Artificial Intelligence-Based Technologies In International Journal of Environmental Research and Public Health Article Application of Artificial Intelligence-Based Technologies in the Healthcare Industry: Opportunities and Challenges DonHee Lee 1 and Seong No Yoon 2,* 1 College of Business Administration, Inha University, Incheon 22212, Korea; [email protected] 2 Department of Business Edward Waters College, Jacksonville, FL 32209, USA * Correspondence: [email protected] Abstract: This study examines the current state of artificial intelligence (AI)-based technology applications and their impact on the healthcare industry. In addition to a thorough review of the literature, this study analyzed several real-world examples of AI applications in healthcare. The results indicate that major hospitals are, at present, using AI-enabled systems to augment medical staff in patient diagnosis and treatment activities for a wide range of diseases. In addition, AI systems are making an impact on improving the efficiency of nursing and managerial activities of hospitals. While AI is being embraced positively by healthcare providers, its applications provide both the utopian perspective (new opportunities) and the dystopian view (challenges to overcome). We discuss the details of those opportunities and challenges to provide a balanced view of the value of AI applications in healthcare. It is clear that rapid advances of AI and related technologies will help care providers create new value for their patients and improve the efficiency of their operational processes. Nevertheless, effective applications of AI will require effective planning and strategies to transform the entire care service and operations to reap the benefits of what technologies offer. Keywords: AI-based technology; real-world cases; opportunities and challenges; policy and manage- ment support; healthcare industry Citation: Lee, D.; Yoon, S.N. Application of Artificial Intelligence-Based Technologies in the Healthcare Industry: Opportunities 1. Introduction and Challenges. Int. J. Environ. Res. Information and communication technology (ICT) is a core element of digitized Public Health 2021, 18, 271. https:// organizations that can facilitate operational effectiveness and enhance competitive advan- doi.org/10.3390/ijerph18010271 tage [1–4]. In today’s Fourth Industrial Revolution (4IR) era, advanced digital technologies and devices are widely applied for innovation and value creation across industries [5]. Received: 7 December 2020 The healthcare industry is no exception. Hospitals and care providers around the world, Accepted: 24 December 2020 especially in developed economies, are aggressively deploying digital technologies, such Published: 1 January 2021 as artificial intelligence (AI), machine learning, smart sensors and robots, big data analytics, and Internet of Things (IoT), for improved quality of care and operational efficiency [4]. Publisher’s Note: MDPI stays neu- A study by Aruba [6], a Hewlett-Packard Enterprise company, reported that more than tral with regard to jurisdictional clai- 60% of hospitals worldwide have implemented IoT in their facilities. Therefore, it is valu- ms in published maps and institutio- able to investigate how advanced digital devices are affecting service encounters between nal affiliations. customers and service providers in the healthcare industry [3,4]. Recently, there has been widespread applications of AI-supported technologies in healthcare institutions for improved care service quality and efficiency of medical re- Copyright: © 2021 by the authors. Li- sources [2,7]. Since AI encompasses machine learning, natural language processing, and censee MDPI, Basel, Switzerland. smart robots, AI-based technologies provide numerous opportunities for innovation in This article is an open access article the knowledge-intensive healthcare industry [8,9]. Dozens of startups, as well as existing distributed under the terms and con- image device companies that participated in the Radiological Society of North America ditions of the Creative Commons At- (RSNA) conference held in Chicago in December 2018, made presentations on their AI tribution (CC BY) license (https:// initiatives that support accurate and reliable diagnosis and proper treatment of patients creativecommons.org/licenses/by/ based on the data obtained from clinical examinations [10]. 4.0/). Int. J. Environ. Res. Public Health 2021, 18, 271. https://doi.org/10.3390/ijerph18010271 https://www.mdpi.com/journal/ijerph Int. J. Environ. Res. Public Health 2021, 18, 271 2 of 18 In addition, AI has attracted the attention of researchers, physicians, technology and program developers, and consumers in various fields in terms of its potential for transfor- mative innovations in treating human diseases and public health [2,9,11,12]. According to Accenture [13], hospitals will invest $6.6 billion annually in AI-related technologies by 2021. Safavi and Kalis [9] (p. 1) estimate that “AI applications could create up to $150 billion in annual savings for U.S. healthcare by 2026.” As AI-supported technologies learn and diagnose from a large volume of medical research and patients’ treatment records, they play a significant role in augmenting doctors’ decision-making process for diagnoses and treatment [14–16]. Shiraishi et al. [17] (p. 449) reported that “AI-based diagnostic algorithms are applied in the detection of breast cancer, serving as a ‘second opinion’ in assisting radiologists’ image interpretations.” It was also reported that AI technology can diagnose skin cancer more accurately than a professional dermatologist [18]. The diagnosis can be processed more quickly and efficiently because it is analyzed based on knowledge gained from a large body of knowledge and data [19]. More- over, advanced virtual human avatars are being used to conduct conversations required to diagnose and treat patients with the mental disease [20]. Miyashita and Brady [21] provided an example of discharged patients who were fitted with a Wi-Fi-enabled armband that remotely monitors vital signs, such as respiratory rate, oxygen levels, pulse, blood pressure, and body temperature, from a group of hospitals serving 500,000 people in southeast England. In this case, hospital readmission rates and emergency room visits were reduced significantly through AI programs that analyze patient data in real-time. The need for expensive home visits was also reduced by 22%. In the long term, adherence to the treatment plan increased to 96% compared to the industry average of 50%. In another example, Grady Hospital, a public hospital in Atlanta, USA, reported $4 million in savings from a 31% reduction in readmission rates over two years due to the application of an AI-enabled tool to identify “at-risk” patients [21]. Considering such cases where AI serves a supporting/augmenting role in diagnosis and/or treatment and operation processes, some may assume that physicians will be rendered obsolete in the near future. However, it is necessary to first assess the role that AI can play to explore opportunities and challenges that are associated with AI applications in the healthcare industry. It is apparent, based on many real-world examples of AI applications, that AI has an enormous and wide-reaching potential with almost everything from simple operational process innovation to the most sophisticated treatments of emergency patients [9]. Some of the notable challenges involved in the widespread application of AI and digital devices include privacy concerns, cybersecurity, data integrity concerns, data own- ership, the problem of data-sharing by various organizational silos, medical ethics issues, responsibility for medical errors, and risks of system failures [7,9,22]. Considering the nature of healthcare services, ethical issues are real challenges because AI technology may threaten patients’ preferences, safety, and privacy [2,7,19]. Currently, policies and ethical guidelines for healthcare services that incorporate AI and its applications lag behind the speed of advances in AI [19]. Also, AI-based technologies should encompass problem- solving flexibility and human-oriented values. However, AI-based technologies are still quite controversial in the healthcare industry because they are not yet universally available to all care providers. Therefore, there is a need to analyze existing cases of AI-based tech- nologies and their applications to understand the future direction of their use in diagnoses, quality care services, and operational strategies. Based on this context, this study analyzes several real-world examples in the healthcare industry to understand how AI affects care services and operational processes. This line of research will allow us to recommend a set of strategies to enhance the efficiency of patient treatment and prevention of diseases, as well as the operational efficiency of hospitals. For this purpose, we performed an extensive review of the literature and diverse real-world cases to uncover AI-based technologies and their applications in healthcare systems. This study is meaningful in that it presents new insights about the direction of technology-based Int. J. Environ. Res. Public Health 2021, 18, 271 3 of 18 service operations management. The results of our study are expected to provide valuable new information to hospital administrators, medical personnel, medical school curricula developers, education and training managers, human-machine roles and responsibilities specialists, privacy and cybersecurity analysts, and medical ethics professionals. This paper
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